Slashed prices leads to cash boost for ASDA

FAMILIES had a cash boost from falling clothing and food costs for the eighth month in a row in May as retailers slashed prices to attract customers, a survey showed.

Published: 00:01, Mon, June 23, 2014

Asda’s budget-priced George range [PH]

Money available to households to spend on luxuries rose £4 a week to £171 against May last year due to the first year-on-year fall in food prices since 2006, according to the Asda Income Tracker.

A sharp slowdown in price inflation of essential items such as food, mortgage payments and clothing – including Asda’s own budget George range – was behind the increase as supermarkets cut prices.

Air fares also fell 3.2 per cent in time for the school half-term holiday

Morrisons fired the latest salvo in the price war today by cutting the price of 135 everyday products such as tinned tomatoes and cat food by 14 per cent on average.

Air fares also fell 3.2 per cent in time for the school half-term holiday, said Asda. But it also voiced caution on wage rises, which slowed to 0.9 per cent from a high of 1.4 per cent earlier in 2014.

Chief executive Andy Clarke said: “The rate of essential item inflation is still slowing thanks to a competitive market. I’m interested to see if next month’s regional breakdown of the tracker will show if this continued growth is being felt in every region.”